USD/CAD Elliott Wave Count for February 16, 2012

Market Overview The USD/CAD pair was trading in a upward move yesterday, in a early European session this major pair tested 50 EMA 2 time before a price broke above the 200 EMA resistance line.Today in a Asian session price continued in a bullish mood and price reached a new high at the 1.0030 level, in a European session price continued to push reaching the 1.0050 level.We are expecting to see breaking to the 0.9954 level today.We need to take a look at USA Building Permits, PPI m/m,Unemployment Claims,Philly Fed Manufacturing Index that could affect this pair

Support and Resistance levels (S3) 0.9914 (S2) 0.9939 (S1) 0.9954 (PP) 0.9979 (R1) 1.0004 (R2) 1.0019 (R3) 1.0044

USD/CAD Elliott Wave Analysis The USD/CAD pair finished (1) wave of the bigger iii wave at 1.0051 today, and started 3 corrective waves in (2) wave.According to our wave rules and taking into consideration that wave (2) will retrace 61.8% or 78.6% of wave (1) we can project our targets with Fibonacci retracement(1.0051-0.9937) to first take profit level at 0.9981(61.8% of wave (1)) and second take profit at 0.9962(78.6% of wave (1).For stop loss we can use end of wave i at 1.0051.

Trading Forecast Proceeding from Elliott Wave Rules the trend is expected to begin the downward movement to go lower today. That is why Short position at levels 1.0020 with Stop Loss at 1.0051, Take Profit at 0.9981 and Take Profit 2 at 0.9962 are recommended